Maharashtra CM charts onion solution for Delhi, forgets Mumbai

Maharashtra can’t seem to be able to supply its stores, but CM Chavan had worked out a formula for the Delhi CM.

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PUNE/MUMBAI: Chief minister Prithviraj Chavan on Friday said he had asked his Delhi counterpart Sheila Dikshit to procure onions directly from the Nashik markets and transport them to the national capital. It would bring down the rates of the bulb to a little over Rs 50 a kg there, much lower than the Rs 80-100 it is selling for now.

Immersed in his homework for Delhi, Chavan doesn't seem to have noticed that in his own capital Mumbai, a fraction of the distance from Nashik compared to Delhi, the bulbs are selling for much more than Rs 50, even at the government fair price shops. The rate is Rs 40 a kg, but its centres on Friday were charging Rs 58-68.

A visit to the Apna Bazar outlet in Andheri on Friday showed onion selling for Rs 60 instead of the official Rs 40. Sahakari Bhandar, Colaba had the loose variety selling for Rs 65 a kg and 1kg pack for Rs 68.

In Bandra, loose onion sold for Rs 58 and the packed variety for Rs 62.

He said prices will fall drastically once the farmers start releasing the new crop from next week. The new crop with high water content is in storage at present as farmers do not get a good price for it.

On Thursday, the new variety was selling for Rs 40 a kg in the government fair price shops and not the usual rates of Rs 10-12. On Friday, even the Rs 40 onion was not available at any government centre.

A visit to the Apna Bazar outlet in Andheri around 3.30pm on Friday showed onion selling for Rs 60 instead of the official Rs 40, a 50% mark-up. Sahakari Bhandar in Colaba had two types: the loose variety for Rs 65 per kg and a 1kg pack for Rs 68. In Bandra, loose onion sold for Rs 58 and the packed variety for Rs 62.

When the state agriculture ministry started running these centres in August, there were two varieties. The superior quality bulb stood at Rs 60 per kg on Wednesday, the inferior No. 2 was available for Rs 40. On Thursday, the state pulled out the Rs 60 bulb, citing low supplies.

"Where is the APMC stock that the government promises? Our centres are barely receiving any onions from the state. We are forced to buy from external suppliers and cannot afford to sell for Rs 40. We have suffered losses to the tune of lakhs and there is no word of compensation," complained a senior official of one government centre.

The state can't seem to be able to supply its stores, but CM Chavan had worked out a formula for the Delhi CM. "The Delhi government has sent three officials to Nashik. Onion prices there range from Rs 38-55 per kg. Delhi can purchase onions from the market as an emergency measure. The cost of transporting 12 to 13 tonnes in a truck would be around Rs 12,000. Working out these costs, onions can be sold at around Rs 50 per kg in Delhi," Chavan said in Pune.

But even in Mumbai, the government stores are not selling at Rs 50. At the Andheri Apna Bazar, the onion price was marked at Rs 60, but the official 40. Tomato was priced at Rs 36 instead of Rs 34, cauliflower Rs 62 against Rs 56 and green chillies Rs 34, not the official Rs 28. After the issue was raised with the store manager, the prices dropped. Apna Bazar chairman Anil Gangar promised to inquire.

A spokesperson for the agriculture ministry said: "The new onion that comes for Rs 40 is wet and not too robust. It is possible that centres which source better quality dry onion independently charge more. But having different rates at government centres can cause confusion within the public."

TIMES VIEW:

A simple comparison between a claimed dip in production and the evident rise in price will be enough to show how people have been taken for a ride. No arithmetic or economics or plain bazaar logic can explain this. This sort of a runaway price rise can only be attributed to rampant profiteering that the government has not been able to check; in all probability, it has been encouraged by politicians who control the trade.